AT&T mulls cut-rate iPhone data plan

$10 butter on Cupertino's bread

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Citing "people with knowledge of the company's thinking," BusinessWeek says that the iPhone exclusive US carrier is pondering a limited data plan for $10 (£6.50) less than its current offering.

AT&T currently sells only an unlimited data plan for $30 (£19.50) per month with the iPhone. The data transfer cap for the prospective discount plan wasn't disclosed.

Apple has recently hinted at punting several different iPhone models with varied functionality baked into the software - in part to appeal more to entry-level consumers. BusinessWeek also speculates Apple may want more flexible data plans if AT&T wants to keep its exclusive US distribution agreement. The carrier's contract with Apple is set to expire in 2010, so it's certainly wise to butter Cupertino's bread.

The story also speculates on a price drop for next generation iPhones by as much as $100, making the phone's upfront cost $99. A prepaid iPhone is also being churned around the rumor mill. ®